During the Current Year,a Corporation Sells Equipment for $300,000

question 40

Multiple Choice

During the current year,a corporation sells equipment for $300,000.The equipment cost $270,000 when purchased and placed in service two years ago and $60,000 of depreciation deductions were allowed.The results of the sale are

• A)ordinary income of $90,000.
• B)Sec.1231 gain of $90,000.
• C)ordinary income of $60,000 and LTCG of $30,000.
• D)ordinary income of $60,000 and Sec.1231 gain of $30,000.

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Definitions:

Frequency Increase

An elevation in the rate or number of occurrences of a particular event or phenomenon within a specific time frame.

Partial Reinforcement

A conditioning principle where a behavior is reinforced only some of the time, leading to a slower acquisition of behavior but greater resistance to extinction.

Shaping

The process of reinforcing successive approximations of a desired behavior to teach new behaviors.

Reinforces

In psychology, refers to consequences that increase the likelihood of the behavior that led to them being repeated in the future.